january 2018 v2 - national grid plc

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Monthly Balancing Services Summary 2017/18

January 2018 V2

Version 2 • Table 10.2 updated with Incentive Profit Forecast

• BSUoS Forecast updated

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Contents 1. Introduction 2

1.1 Purpose of Monthly Balancing Services Summary Report 2

1.2 Nature of information provided in this report 2

1.3 Balancing Services 3

1.4 Report Structure 3

1.5 Services not included in the report 3

2. Services Procured Via Market Arrangements 5

2.1 Reactive Power 5

2.2 Fast Reserve (Tendered) 7

2.3 Short Term Operating Reserve (STOR) including Balancing Mechanism (BM) and Non Balancing Mechanism (NBM) 8

2.4 Tendered Frequency Response. 11

3. Services Procured Via Non-Tendered Bilateral Contracts 12

3.1 Mandatory Frequency Response 12

3.2 Commercial Frequency Response 13

3.3 Fast Start 14

3.4 Black Start 16

3.5 BM Start up 17

3.6 Fast Reserve (Procured on a Non-Tendered basis) 18

3.7 System to System Services 19

3.8 System to Generator Operational Intertripping Schemes 20

3.9 Commercial Intertrip Service 21

3.10 Ancillary Contracts to Manage System Issues 23

3.11 Maximum Generation Service 23

3.12 Demand Turndown, Fees and Liabilities 24

4. Energy Related Products 25

4.1 Forward Trading 25

4.2 Pre-Gate BMU Transactions (PGBT) 27

5. Constraints 28

5.1 Constraint management taken in the Balancing Mechanism, via Trades or by SO-SO actions 28

5.2 Breakdown of Constraint Costs by Fuel Type 30

6. Other Information 32

6.1 New Wind Generation 32

6.2 How we manage Wind generation 32

7. Summary 34

8. Further information 35

9. Information Summary Page 36

10. Summary of BSIS Costs 37

10.1 MBSS Year to Date Summary 37

10.2 Latest Projection of Scheme Outturn Cost 38

10.3 Balancing Service Use of System Charges 39

10.4 Detail BSIS Costs 40

10.5 Volume of BM Actions by Category 42

11. Glossary of Terms used in BSIS Tables 43

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Monthly Balancing Services Summary January 2018

1. Introduction

National Grid procures Balancing Services to operate the transmission system in an efficient, economic and co-ordinated manner. A number of statements and market reports pertaining to the procurement and use of Balancing Services are already published on the industry information web site. National Grid has undertaken to publish this summary on a monthly basis to increase the timeliness and visibility of the Balancing Service actions taken during the given month. This Monthly Summary provides information on the procurement of Balancing Services in twelve separate monthly publications.

1.1 Purpose of Monthly Balancing Services Summary Report

The purpose of the Monthly Balancing Services Summary Report is to provide information in respect of Balancing Services that National Grid has procured during the relevant month for the purpose of operating the electricity transmission system. This publication contains volume and cost information associated with these balancing services and is based on the latest data and information available at the time of publication. The data in this report is subject to revision post publication as reconciled information becomes available. This report, however, is intended only to give an indication of the balancing actions National Grid has undertaken and so the relevant months report will not be republished in light of any revisions.

1.2 Nature of information provided in this report

The information provided for the relevant month is based upon preliminary data. As future monthly summaries are produced, information in the graphs and tables will be updated to reflect the latest information available at that time. Changes to preliminary data that occur after the publication of the relevant month’s report will thus be visible in the graphs and tables of future reports. Each monthly report will report volume data on a monthly rolling basis. The cost values contained in this document are predominantly reported to 2 decimal places (£m). Due to confidentiality agreements in place within Balancing Services contracts and the resolution of utilisation on a monthly basis, some information cannot be published in relation to the provision of some of these services. Where there are only a limited number of providers in a given month, cost information will not be separately identified on a monthly basis against the relevant service.

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1.3 Balancing Services

The Balancing Services National Grid has procured, either via market arrangements or bilateral contracts, throughout the period covered by the Report, are:

• Frequency Response

• Reactive Power

• Fast Start

• Black Start

• Reserve Services - Fast Reserve, Short Term Operating Reserve, BM Start-up

• System to Generator Operational Intertripping Schemes

• Commercial Intertrip Service

• Ancillary Contracts to manage System Issues

• Maximum Generation Service

• All Other Services

• System to System Services

• Energy Related Products (including PGBT) It is important to note that Balancing Services are procured from both Balancing Mechanism and Non Balancing Mechanism Parties. For further information regarding the type of providers of Balancing Services please consult the Procurement guidelines on the National Grid website.

1.4 Report Structure

This report presents the Balancing Services under four main titles:

• Services Procured via Market Arrangements

• Services Procured via Non-Tendered Bilateral Contracts

• Energy Related products

• A summary section providing the high level information for all services for the relevant month.

Further information is also provided within this report on the total costs of managing constraints, payments made to wind powered generation and overall costs of system operation, including forecast BSUoS charges.

1.5 Services not included in the report

The monthly total costs in this document intentionally do not include the acceptance of Bids or Offers in the Balancing Mechanism. However where the structure of ancillary services include a utilisation component exercised through the Balancing Mechanism those Bid and Offer volumes and costs have been included in the relevant graphs to better inform participants of the costs in those areas.

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Further information on Bid and Offer acceptances is contained within the Balancing Principles Statement which can be located on the National Grid Website in the Electricity section under Balancing Services & Transmission Licence Statements. All Bid and Offer information is available by clicking the following link to the NETA web site in the BMRS: http://www.bmreports.com/

http://www.bmreports.com/

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2. Services Procured Via Market Arrangements

2.1 Reactive Power

National Grid manages voltage on the transmission system within statutory limits to ensure quality of supply. In doing this we ensure that reactive power resources are provided on a localised basis to meet the constantly varying needs of the system, and that there is sufficient reactive power reserve available to meet contingencies.

2.1.1 Market Arrangements for Reactive Power

All contracts awarded via tender round 40 (TR40) commenced on the 01 October 2017. For further information regarding the nature of these contracts please refer to the National Grid Website: http://www2.nationalgrid.com/uk/services/balancing-services/reactive-power-services/

For this reporting period, the total utilisation volume for reactive power procured via market arrangements was 0GVArh. The total expenditure relating to the capability and utilisation costs of reactive power procured via market arrangements was £0.09m.

2.1.2 Default Arrangements for Reactive Power

For this reporting period, the total utilisation volume for reactive power under the default arrangements was 2,030GVArh. The total amount spent on Reactive Power under the default arrangements during this reporting month was £6.39m. For further information regarding the default payment arrangements please view the Introduction to Reactive document which can be found on the National Grid Website. For this month, the combined total expenditure on reactive power was £6.48m.

http://www2.nationalgrid.com/uk/services/balancing-services/reactive-power-services/

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2.1.3 Utilisation of Reactive Power

Utilisation of Reactive Power under market and default arrangements for the relevant month is detailed in the chart below.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Apr-

17

Ma

y-17

Jun-1

7

Jul-1

7

Aug

-17

Sep

-17

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Fe

b-1

8

Ma

r-1

8

Mva

rh

Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Reactive Default Utilisation Volume (MVArh) 2,593,913 2,855,271 2,344,972 2,626,700 2,355,907 2,181,430 2,099,409 2,058,169 2,131,966 2,030,388

Reactive Market Utilisation Volume (MVArh) 0 0 0 0 0 0 0 0 0 0

Reactive Power Utilisation Volumes

Utilisation costs of Reactive Power under market and default arrangements over the relevant period are detailed in the chart below.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Apr-

17

Ma

y-17

Jun-1

7

Jul-1

7

Aug-1

7

Sep-1

7

Oct

-17

Nov-1

7

Dec-1

7

Jan-1

8

Feb

-18

Ma

r-1

8

£m


Reactive Default Total £m 7.68 7.62 6.11 6.62 6.10 5.86 5.93 5.93 6.55 6.39

Reactive Market Total £m 0.08 0.08 0.09 0.09 0.08 0.09 0.09 0.09 0.09 0.09

Reactive Power Costs

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2.2 Fast Reserve (Tendered)

Further information explaining the service and assessment criteria of tenders for this Balancing Service can be found on the National Grid Website under Electricity/Balancing/tender reports/fast reserve.

The following table lists the tender details for the relevant month.

Total MW

tendered

Total MW

contracted

Nominated

MWhrs

Firm Fast

Reserve £m

Apr-17 270 270 139,200 0.90

May-17 330 330 175,560 1.11

Jun-17 330 330 170,010 1.08

Jul-17 330 330 176,550 1.12

Aug-17 330 330 176,640 1.12

Sep-17 330 330 140,040 1.08

Oct-17 270 270 144,600 0.95

Nov-17 280 280 141,280 1.04

Dec-17 280 280 146,700 1.09

Jan-18 280 280 145,760 1.10

Feb-18

Mar-18

2.2.1 Fast Reserve (Tendered) Capacity Contracting

The following graph shows the variation in Fast Reserve capacity contracting by month.

0.0

0.2

0.4

0.6

0.8

1.0

1.2

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oct-

17

Nov-1

7

Dec-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-1

8

Co

st

(£m

)

Po

sit

ion

al

(MW

hrs

)


Nominated MWhrs 139,200 175,560 170,010 176,550 176,640 140,040 144,600 141,280 146,700 145,760

Firm Fast Reserve £m 0.90 1.11 1.08 1.12 1.12 1.08 0.95 1.04 1.09 1.10

Fast Reserve Tendered

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A total of 280MW of capacity was contracted during the month. The total expenditure on availability and utilisation excluding bids and offers was £1.10m. For more information on Fast Reserve please refer Fast Reserve information at: http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/fast-reserve/ Fast Reserve Contracts placed through non-tendered bilateral agreements are detailed in section 3.6 of this report.

2.3 Short Term Operating Reserve (STOR) including Balancing Mechanism (BM) and Non Balancing Mechanism (NBM)

National Grid procures Short Term Operating Reserve (STOR) through a competitive tender process which is conducted three times per year. For further information regarding this service, and the timetable for future tenders, please refer to the STOR information at: http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/short-term-operating-reserve/

The current reporting month falls in Season 10.5 2016/17. This season was available for tenders in tender rounds 11 to 12 for long term tenders and tender rounds 25 to 30. A total of 4024MW was accepted for season 10.5 respectively. Outturn and contracted figures for January 2018 are shown in the table below.

Outturn Contracted

Volume weighted average availability price £8.84/MWh 5.85/MWh

Volume weighted average utilisation price £56.52/MWh 132.71/MWh

MW available 2647.83MW 4525MW

http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/fast-reserve/

http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/short-term-operating-reserve/

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2.3.1 STOR BM and Non-BM Availability Costs

1.71 1.71 1.84 2.02 1.94 1.81 1.67

5.11 5.15 5.322.12 2.46 2.52 2.53 2.49 2.31 2.22

2.34 2.33 2.40

0.000.01 0.01 0.01 0.01

0.01 0.00

0.00 0.00 0.00

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Apr-

17

Ma

y-1

7

Jun-1

7

Jul-1

7

Aug

-17

Sep

-17

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Fe

b-1

8

Ma

r-1

8

£m

STOR BM & NBM Availability Costs

STOR BM Committed Avail Cost £m STOR NBM Committed Avail Cost £m

STOR NBM Flexible Avail Cost £m

Note – the underlying data, presenting flexible STOR information since 1 April 2007, is available in the MBSS_DATA Excel file.

2.3.2 Previous Year STOR BM & NBM Availability Costs

STOR BM Committed Avail Cost £m 4.29 1.03 1.57 2.64 3.99

STOR NBM Committed Avail Cost £m 2.00 1.73 1.77 1.93 1.70

STOR NBM Flexible Avail Cost £m 0.09 0.15 0.06 0.07 0.19

Average Utilisation Payment £/MWh 96.47 119.76 131.94 192.42 202.00

January 2012/13Previous Years Costs January 2015/16 January 2014/15 January 2013/14January 2016/17

Previous Years Costs January 2016/17

January 2015/16

January 2014/15

January 2013/14

January 2012/13

STOR BM Committed Avail Cost £m 4.29 1.03 1.57 2.64 3.99

STOR NBM Committed Avail Cost £m 2.00 1.73 1.77 1.93 1.70

STOR NBM Flexible Avail Cost £m 0.09 0.15 0.06 0.07 0.19

Average Utilisation Payment £/MWh 96.47 119.76 131.94 192.42 202.00

Note – this table is based on previous years’ Settlements data. This year’s figures to date are available in the chart in 2.3.1.

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2.3.3 STOR MW Profiles with Results of Flexible STOR Assessments

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed

01-Jan-18

02-Jan-18

03-Jan-18

04-Jan-18

05-Jan-18

06-Jan-18

07-Jan-18

08-Jan-18

09-Jan-18

10-Jan-18

11-Jan-18

12-Jan-18

13-Jan-18

14-Jan-18

15-Jan-18

16-Jan-18

17-Jan-18

18-Jan-18

19-Jan-18

20-Jan-18

21-Jan-18

22-Jan-18

23-Jan-18

24-Jan-18

25-Jan-18

26-Jan-18

27-Jan-18

28-Jan-18

29-Jan-18

30-Jan-18

31-Jan-18

MW

Day, Date & Window

STOR MW Profile for month of Jan 2018

BM_AVAIL NBM_C_AVAIL F_ACCEPT_AVAIL F_REJECT BM_UNAVAIL NBM_C_UNAVAIL F_UNAVAIL

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2.3.4 STOR BM and Non-BM Utilisation

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Oct-17

Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

STOR NBM Flexible Utilisation MWhrs (Inc Ramp Energy) 15,296 23,628 17,091 20,802 21,535 22,840 30,447 29,921 40,238 36,477

STOR NBM Committed Utilisation MWhrs (Inc Ramp Energy) 9,814 17,453 11,483 12,165 11,103 9,296 8,621 3,282 2,451 1,958

STOR BM Committed Utilisation MWhrs 2,604 2,422 857 1,910 1,226 1,067 2,756 4,798 2,432 3,235

STOR BM Committed Util Cost £m (Settlement) 0.447 0.400 0.125 0.310 0.180 0.155 0.422 0.732 0.376 0.505

STOR NBM Committed Util Cost £m 0.649 1.160 0.760 0.870 0.708 0.621 0.608 0.213 0.176 0.129

STOR NBM Flexible Util Cost £m 0.744 1.168 0.790 1.008 1.073 1.074 1.411 1.216 1.636 1.432

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

MW

h

£m

STOR BM & NBM Utilisation MWhr and Cost

Non-BM STOR Availability payments, Non-BM STOR Utilisation payments and BM STOR Availability payments are paid as Balancing Services. BM STOR Utilisation payments are paid via the BM Bids and Offers, not as a Balancing Service, they are included in this report only to clarify the total STOR expenditure. The total STOR expenditure on availability payments and utilisation payments to both BM and NBM providers for the month was £9.79m. The total STOR Utilisation volume for both BM and Non-BM units for the month was 41,670MWh. For further information on the nature of this service please refer to the STOR information at: http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/short-term-operating-reserve/

2.4 Tendered Frequency Response

Please see Section 3.2 Commercial Frequency Response.

http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/short-term-operating-reserve/

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3. Services Procured Via Non-Tendered Bilateral Contracts

3.1 Mandatory Frequency Response

Mandatory Frequency Response is a mandatory service provided by large generators (>100MW) to automatically change their active power output in response to a change in system frequency. The Grid Code Connection Condition 6.3.7 and 8.1 describe the technical requirements for this service. Payments for Mandatory Frequency Response comprise a Holding Payment (£/MWh) and a Response Energy Payment (£/MWh). Details on frequency response holding are given below. More information on this can be found on the National Grid Website: http://www2.nationalgrid.com/uk/services/balancing-services/frequency-response/mandatory-frequency-response/

Mandatory Frequency Response Holding

0

100

200

300

400

500

600

700

800

900

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oct-

17

Nov-1

7

Dec-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-1

8Tota

l R

esp

onse

Ho

ldin

g G

Wh


High (GWh) 371.54 304.13 274.19 277.84 263.21 237.62 354.01 449.01 297.66 129.27

Secondary (GWh) 174.28 136.92 124.52 114.49 117.02 118.80 102.92 116.68 88.46 51.70

Primary (GWh) 283.26 217.52 221.48 194.02 201.98 210.43 167.86 193.38 155.50 92.45

Mandatory Frequency Response Holding

http://www2.nationalgrid.com/uk/services/balancing-services/frequency-response/mandatory-frequency-response/

http://www2.nationalgrid.com/uk/services/balancing-services/frequency-response/mandatory-frequency-response/

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3.1.1 Average holding price of Mandatory Frequency Response

0

1

1

2

2

3

3

4

4

5

Apr-

17

May-1

7

Jun

-17

Jul-

17

Aug

-17

Sep

-17

Oct-

17

Nov-1

7

Dec-1

7

Jan

-18

Feb

-18

Mar-

18

Ave

rag

e H

old

ing

Price

(£

/MW

h)


Primary 2.16 2.13 2.08 2.22 2.35 2.16 2.11 2.18 2.16 2.08

Secondary 1.81 1.76 1.70 1.76 2.04 1.76 1.73 1.76 1.73 1.68

High 3.94 4.00 3.85 3.89 4.22 3.79 3.72 3.66 3.62 3.68

Mandatory Frequency Response Average Holding Price

Spend on Mandatory Frequency Response holding for the reporting month was £0.79m.

Spend on Response Energy Payments was £0.07m1. The methodology for calculating these payments is given in the Connection & Use of System Code (CUSC) section 4.1.3.9 & 4.1.3.9A. The CUSC can be found on the National Grid website.

The total expenditure on Mandatory Frequency Response during the reporting month was £0.86m.

3.2 Commercial Frequency Response

Commercial Frequency Response is a collection of services that can be provided by demand side participants and generation plant. The technical characteristics of these services are different to those required under mandatory service arrangements, and range from enhanced mandatory dynamic services through to non-dynamic services effected via LF relays. Part of the contract portfolio includes services provided by demand side participants through Frequency Control Demand Management (FCDM) and through the firm frequency response (FFR) tender rounds.

1 The Response Energy Payment can be both a positive or negative payment, dependant upon the relative volumes of high and low frequency response dispatched during the course of the relevant month.

http://www.nationalgrid.com/NR/rdonlyres/20B37E78-2416-4AD7-95B7-3FA94D010365/54072/CUSC_section_4_v119_CMP204_07th_June12.pdf

http://www.nationalgrid.com/NR/rdonlyres/20B37E78-2416-4AD7-95B7-3FA94D010365/54072/CUSC_section_4_v119_CMP204_07th_June12.pdf

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3.2.1 Commercial Frequency Response Holding Volume and Cost

0.0

1.5

3.0

4.5

6.0

7.5

9.0

10.5

12.0

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

Apr-

17

May-1

7

Jun

-17

Jul-

17

Aug

-17

Sep

-17

Oct-

17

No

v-1

7

De

c-1

7

Jan

-18

Fe

b-1

8

Mar-

18

£mM

Wh


Holding Volume 309,930 441,818 451,669 490,642 468,499 417,773 407,741 322,839 507,405 481,878

Response cost 6.71 9.24 9.08 9.39 7.76 7.95 7.60 6.62 8.31 8.58

Commercial Frequency Response Holding

The total amount spent on Commercial Frequency Response holding during the reporting month was £8.58m. Further information on Commercial Frequency is found in the appropriate place on the National Grid Website, or specifically on firm frequency response through the tenders and reports section of National Grid’s Balancing Services website.

3.3 Fast Start

Fast Start is the ability of Open Cycle Gas Turbine (OCGT) plant to start rapidly from a standstill condition and to deliver its rated power output automatically within a defined time period.

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3.3.1 Fast Start Details

0.0

0.1

0.2

0.3

0.4

0.5

Ap

r-17

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oct-

17

Nov-1

7

Dec-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-18

£m


Fast Start 0.40 0.41 0.44 0.51 0.42 0.43 0.58 0.27 0.30 0.28

Fast Start Utilisation

The total amount paid during the relevant reporting month for the availability and utilisation of the Fast Start service was £0.28m.

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3.4 Black Start

During the reporting month there were up to 15 stations with Black Start agreements in place. No new agreements were entered into during the period. The total amount paid during the relevant reporting month for the availability of the Black Start service was £3.30m.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00


£m

Apr-17May-

17Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Black Start Contract costs (£m) 2.52 2.41 2.24 2.51 2.48 2.79 3.07 3.28 3.32 3.30

Other Black Start Costs (£m) 0.00 0.00 0.09 0.00 0.27 0.62 0.00 0.00 0.00 0.00

Black Start Costs

Further information on Black Start can be found on the National Grid Website: http://www2.nationalgrid.com/UK/Services/Balancing-services/System-security/Black-start/

http://www2.nationalgrid.com/UK/Services/Balancing-services/System-security/Black-start/

17


3.5 BM Start up

The chart below contains information relating to the procurement of BM Start Up Balancing Services.

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

22.00

24.00

Ap

r-1

7

May-1

7

Ju

n-1

7

Ju

l-17

Au

g-1

7

Se

p-1

7

Oct-

17

No

v-1

7

De

c-1

7

Ja

n-1

8

Feb

-18

Mar-

18

Co

st

£m

Nu

mb

er

of

BM

Sta

rt U

p I

ns

tru

cti

on

s


No. of BMSU Instructions 5.00 5.00 8.00 15.00 5.00 10.00 19.00 21.00 17.00 17.00

Total Spend £/m 0.27 0.20 0.21 0.09 0.13 0.10 0.12 0.08 0.14 0.32

BM Start Up

The total amount spent on BM Start Up during the reporting month was £0.32m. The total number of BM Start Up instructions was 17. Further details are available via the National Grid Website: http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/bm-start-up/

http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/bm-start-up/

18


3.6 Fast Reserve (Procured on a Non-Tendered basis)

Non-Tendered Fast Reserve is a service that is contracted on a bilateral basis with service providers. The nature of the service is similar to the Firm Fast Reserve service although the payment and utilisation mechanisms differ for each service.

0.00

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Apr-

17

Ma

y-17

Jun-1

7

Jul-1

7

Aug

-17

Sep

-17

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Fe

b-1

8

Ma

r-1

8

MW

hrs

£m

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Oct-17

Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

Fast Reserve Total Cost in £m 4.80 4.80 4.56 4.33 4.70 4.85 5.65 4.67 5.41 5.62

Non Tendered Holding Volume MWh 231,015 245,858 258,155 254,387 252,826 231,316 277,101 235,580 256,864 262,088

Fast Reserve (Non Tendered)

The availability payments during the relevant month totalled £5.62m, excluding utilisation via offers and bids accepted in the Balancing Mechanism.

19


3.7 System to System Services

System to System services are provided mutually with other Transmission System Operators connected to the GB system via interconnectors. Such services are typically used to manage interconnector transfer profiles and to increase or reduce power flows across an interconnector to resolve transmission constraints on either side, or provide Emergency Assistance if required. The graph below shows the total net volume imported and exported between GB, France and Northern Ireland.

3.7.1 Volumes of System to System Services

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

Apr-

17

May-1

7

Ju

n-1

7

Ju

l-17

Aug

-17

Sep

-17

Oct-

17

No

v-1

7

De

c-1

7

Ja

n-1

8

Feb-1

8

Mar-

18

MW

h

SO to SO Volumes

NG buy from RTE NG sell to RTE RTE sell to NG RTE buy from NG

NG buy from SONI NG sell to SONI SONI sell to NG SONI buy from NG

The total energy volumes associated with system to system services during the reporting month was -0.02GWh export (from GB) and 0.17GWh import (to GB).

20


3.7.2 Expenditure on System to System Services

The following graph shows total net expenditure associated with System to System Services and was £0.78m.

-0.3

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oct-

17

No

v-1

7

De

c-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-1

8

£m

SO to SO Costs

NG buy from RTE NG sell to RTE RTE sell to NG RTE buy from NG

NG buy from SONI NG sell to SONI SONI sell to NG SONI buy from NG

3.8 System to Generator Operational Intertripping Schemes

As a consequence of their connection conditions, certain generators are obligated to have in place operational intertrip schemes. These schemes fall under a number of different category types as defined under section 4.2.A of the CUSC which describes the compensation arrangements relating for these schemes. A proportion of these categories entitle the counter party to payments for the arming (capability fee) and utilisation of this service.

21


3.8.1 Capability Payments

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.10

0.11

0.12

0.13

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oct-1

7

No

v-1

7

De

c-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-1

8

£m

System to Generator Operational Intertripping - Capability Payments

System to Generator Operational Intertripping – Capability Payments in the reporting month totalled £0.12m.

3.9 Commercial Intertrip Service

In addition to System to Generator Operational Intertripping Schemes, National Grid will seek to, where it proves economic and efficient to do so, enter into commercial Intertrip schemes to manage system issues.

22


3.9.1 Commercial Intertrip Expenditure

0.0

0.1

0.1

0.2

0.2

0.3

0.3

Apr-

17

Ma

y-17

Jun-1

7

Jul-1

7

Aug

-17

Sep

-17

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Fe

b-1

8

Ma

r-1

8

Co

sts

(£

m)


Commercial Intertrip 0.01 0.04 0.17 0.26 0.07 0.06 0.02 0.07 0.01 0.02

Commercial Intertrips

Expenditure on Commercial Intertrips was £0.02m.

3.9.2 Commercial Intertrip Cost Breakdown

MonthCapability

Payment £'s

Arming

Payment £'s

Number of

Hours of

Intertrip

Arming, Outside

of Pre-Paid

Arming

Contract(s)

Contracted Pre-

paid Arming £'s

Number of

Hours Armed

under Pre-Paid

Arming

Contract(s)

Number of TripsTripping

Payment £'s

Apr-17 12,092 1,725 6 0 0 0 0

May-17 12,495 24,970 40 0 0 0 0

Jun-17 12,092 156,602 209 0 0 0 0

Jul-17 12,495 251,466 243 0 0 0 0

Aug-17 12,495 61,955 94 0 0 0 0

Sep-17 12,092 45,284 73 0 0 0 0

Oct-17 12,495 10,484 17 0 0 0 0

Nov-17 12,092 58,263 99 0 0 0 0

Dec-17 12,495 0 0 0 0 0 0

Jan-18 12,495 6,035 10 0 0 0 0

Feb-18

Mar-18 Under commercial intertrip agreements arming is payable either as:

1. A fixed pre-agreed sum, this may be for a fixed number of hours or unlimited hours (shown above as Contracted arming) or;

2. Payable on utilisation with the generator typically having the right to alter their payments with a short notice period (shown above as Arming Payments).

3. NGET have on occasion agreements in place with generators to manage system issues which include the use of a number of hours of arming on an intertrip. The figure quoted in the “Contracted pre-paid arming” column is the maximum firm payment that could be made assuming the intertrip is available for use for all the Contracted Arming hrs as quoted in the above table during the contracted period.

23


3.10 Ancillary Contracts to Manage System Issues

On occasion, National Grid enters into bespoke Ancillary service contracts to manage certain transmission system issues. A number and nature of these contracts is necessarily confidential however where possible National Grid will make the information available via our website. The costs reported here include any costs of ‘Transmission Related Agreements’, which are entered as a consequence of certain customer choices of connection conditions.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oct-

17

No

v-1

7

De

c-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-1

8

Co

sts

(£

m)

All other services

Constraint Contracts (£m) Maximum Generation Service

System to Generator Operational Intertripping Demand Turndown

Fees / Liabilities

Further details on constraint contracts are available, where possible, via the National Grid Website: http://www2.nationalgrid.com/UK/Services/Balancing-services/System-security/Transmission-

Constraint-Management/

3.11 Maximum Generation Service

The Maximum Generation Service (MGS) is required to provide additional short term generation output during periods of system stress for system balancing. This service allows access to unused capacity outside of the Generator’s normal operating range. MGS will be initiated by the issuing of an Emergency Instruction in accordance with the Grid Code BC2.9.2. Details of the service are contained in the CUSC section 4.2.

http://www2.nationalgrid.com/UK/Services/Balancing-services/System-security/Transmission-Constraint-Management/

http://www2.nationalgrid.com/UK/Services/Balancing-services/System-security/Transmission-Constraint-Management/

24


3.12 Demand Turndown, Fees and Liabilities

The figure for Demand Turndown, Fees and Liabilities includes bespoke services to manage specific system conditions and costs relating to fees and liabilities.

0.00

0.05

0.10

0.15

0.20

0.25

Apr-

17

Ma

y-17

Jun-1

7

Jul-1

7

Aug

-17

Sep

-17

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Fe

b-1

8

Ma

r-1

8

Co

sts

(£

m)


Demand Turndown, Fees and Liabilities 0.18 0.19 0.18 0.19 0.19 0.18 0.19 0.18 0.19 0.00

Demand Turndown, Fees and Liabilities

The total expenditure on Demand Turndown, Fees and Liabilities during the reporting month was £0.00m.Please note that these costs are usually one month in arrears.

25


4. Energy Related Products

4.1 Forward Trading

National Grid’s forward trading is undertaken to reduce the overall costs of balancing the system, and to resolve system issues as appropriate. There are a number of products and procurement mechanisms available. During the reporting month, National Grid traded a gross volume of 366,199MWh.

Non Locational

Buy Volume 0,000MWh

Sell Volume 0MWh

Total Net Spend £4.36m

BMU Specific

Buy Volume 116,633MWh

Sell Volume -249,566MWh

Note: We discovered an error in our internal processes which miscategorised some trades as Non-Locational; these have been corrected and the following graphs and tables have been updated.

4.1.1 Volume of Forward Trading Buys and Sells

The following chart shows the monthly profile of our trading activities, both for non-locational energy trades and BMU-Specific trades.

-450,000

-400,000

-350,000

-300,000

-250,000

-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Apr-

17

Ma

y-1

7

Jun-1

7

Jul-1

7

Aug-1

7

Sep-1

7

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Fe

b-1

8

Ma

r-18

Vo

lum

e (

MW

h)


Non Locational Buy (OTC) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Non Locational Sell (OTC) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

BMU Specific Sell -213,490 -222,368 -312,925 -370,471 -392,281 -234,352 -341,918 -207,164 -268,297 -249,566

BMU Specific Buy 176,347. 142,586. 67,660.0 73,866.0 82,588.0 35,033.0 166,700. 147,809. 291,644. 116,633.

Forward Trade Buys and Sells

26


4.1.2 Non-Locational Trading Activity

The following graph shows the monthly profile of our non-locational energy trading activity. It comprises all the trades undertaken by National Grid through Power Exchanges and through the use of brokerage houses for that purpose.

0

0

0

0

0

1

1

1

1

1

1

Apr-

17

Ma

y-17

Jun-1

7

Jul-1

7

Aug

-17

Sep

-17

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Fe

b-1

8

Ma

r-1

8

£/M

Wh


Avg. Buy Price (£/MWh) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Avg. Sell Price (£/MWh) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Average Price of Non-Locational Energy Trades

Further details are available via the National Grid Website: https://www.nationalgrid.com/uk/electricity/balancing-services/trading

https://www.nationalgrid.com/uk/electricity/balancing-services/trading

27


4.2 Pre-Gate BMU Transactions (PGBT)

Information on PGBT activity Transactions Sourced and Agreed is given in the chart below.

-0.20

-0.10

0.00

0.10

0.20

0.30

0.40

-2000.00

-1500.00

-1000.00

-500.00

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

4000.00


£m

Vo

lum

e M

Wh


Sell (MWh) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Buy (MWh) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Buy £m 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sell £m 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

PGBT Actions

The total net spend on PGBT during the reporting month was £0m. Details on real time PGBT transactions can be found on the BMRS (system warning page) and post event, on the National Grid Website.

28


5. Constraints

A constraint is essentially when the energy flow in a certain area of the network is limited by the capacity of the network. When National Grid asks a generator to reduce output (constrain) we still need the electricity it would have produced to keep the network balanced, it’s just that we can’t move it in or out of a certain area. We manage this by buying energy from the market for another generator elsewhere on the network to increase output and make up the difference essentially. This can equally happen the other way around in that some areas might need more energy to be produced within them and hence there would need to be reductions elsewhere. If we did not carry out these activities then this could result in damage to equipment or put areas of the system at risk of shutting down completely. National Grid resolves these constraints on the GB Transmission System through different mechanisms, including bids and offers in the Balancing Mechanism, PGBTs, Trades, SO-SO actions and through contracted services. The costs of resolving constraints via intertrip contracts (see section 3.9) and bilateral contracts (see section 3.10) have already been explored. The total cost of managing transmission constraints in this month was £29.98m

5.1 Constraint management taken in the Balancing Mechanism, via Trades or by SO-SO actions

The total cost of resolving constraints via Balancing Mechanism, Trading and SO-SO actions was £29.67m. This total includes part of the costs of SO-SO actions (section 3.7), Trades (section 4.1) and PGBTs (section 4.2) already reported above. This section shows how this figure was calculated.

29


5.1.1 Summary of costs of constraint actions taken in the Balancing Mechanism, via Trades and SO-SO actions

Type of

Constraint

Location Date

Constrained

Volume

(GWh)

[A]

-88.16 -150.97 -239.79 -478.92 0.00 0.00 97.35 97.35 576.26

Average Price of

Action

(£/MWh)

[B]

-0.27 -17.78 11.29 0.00 0.00 0.00 70.17 70.17 11.85

Average Energy

Replacement

Price (£/MWh)

[C]

46.99 45.92 44.99 45.65 0.00 0.00 46.13 46.13 45.73

Total Direct Cost

(£m)

[G]=[A*(B-C)]

4.17 9.62 8.08 21.86 0.00 0.00 2.34 2.34 24.20

Reserve

Replaced

(GWh)

128.50 185.60 267.43 581.53 0.00 0.00 1.62 1.62 583.14

Volume of

Actions Required

for Reserve

Replacement

(GWh)

[D]

67.05 100.14 145.40 312.59 0.00 0.00 1.77 1.77 314.37

Average Reserve

Replacement

Price (£/MWh)

[E]

65.82 68.73 67.45 125.56 0.00 0.00 4.28 3.90 125.23

Average Energy

Reference Price

for Reserve

Replacement

(£/MWh)

[F]

48.76 47.47 45.79 87.40 0.00 0.00 48.87 44.58 87.28

Total Reserve

Cost

(£m)

[H]=[D*(E-F)]

1.14 2.13 3.15 6.42 0.00 0.00 -0.08 -0.08 6.34

Total Cost

(£m)

[I]=[G+H]

5.31 11.74 11.23 28.28 0.00 0.00 2.26 2.26 30.54

Additional

(Transferred)

Costs

(£m)

[J]

0.09 0.20 0.22 0.51 0.00 0.00 -1.39 -1.39 -0.88

Total constraint

net cost

(£m)

[I+J]

5.40 11.95 11.45 28.80 0.00 0.00 0.87 0.87 29.67

Grand

SummaryCheviotEngland

& WalesScotland

ImportImport

summary

Export

summary

Export

Scotland CheviotEngland

& Wales

*Note Constrained Volumes for Import and Export are now shown as positive volumes. The Grand Summary therefore is the absolute constrained volume.

30


5.1.2 Break down of constraint costs per category

ACTION TYPE Export Import Total

BM Actions 22.44 0.43 22.87

SO-SO Trades 0 0 0

Trades (including PGBT) 6.36 0.44 6.80

Total 28.80 0.87 29.67

5.1.3 Explanatory Notes

Row Description

Constrained Volume (GWh) Total volume of bids/offers accepted for BM Units within a constrained zone

Average Price of Action (£MWh) Volume weighted average prices of bids / offers

Average Energy Replacement Price (£/MWh) Volume weighted average of the energy reference price(*)

Total Direct Cost (£m) Constrained Volume x (Average Price of Action - Average Energy Replacement Price)

Reserve Replaced (GWh)

Additional reserve created to replace reserve sterilised behind constraints e.g. capacity of

additional units sychronised to the system

Volume of Actions Required for Reserve

Replacement (GWh)

Volume of actions required by National Grid to create replacement reserve e.g. offers in

the BM to run a unit at SEL thus gaining access to capacity of unit.

Average Reserve Replacement Price (£/MWh) Volume weighted average of prices of the reserve actions

Average Energy Reference Price for Reserve

Replacement (£/MWh)

Volume weighted average of the energy reference price(*) for periods when reserve is

replaced

Total Reserve Cost (£m)

Reserve replaced x (Average Reserve Replacement Price - Average Energy Reference

Price for Reserve Replacement)

Total Cost (£m) Total Direct Cost + Total Reserve Cost

Additional (Transferred) Costs (£m)

For some import constraints, actions taken in BM units within the constrained zone may

end up being the cheapest option for creating system reserve - in this case all or part of the

cost is transferred to the relevant account. In all other circumstances,

Total constraint net cost (£m) Total Cost + Additional (Transferred) Costs

(*) Energy reference price (£/MWh)

For each settlement period, it is the volume weighted average of the submitted bids/offers

available for National Grid to resolve NIV, i.e. the lowest (highest) available price of offers

(bids) stacked up to NIV when the market is short (long)

5.2 Breakdown of Constraint Costs by Fuel Type

In mid-January 2014 National Grid confirmed we would include a table within this report showing the costs of constraints broken down by fuel type. In the tables below, you will see that there are two columns showing what makes up constraint payments – one shows the costs National Grid has incurred to constrain generation (“Payments to Manage Constraint”) and the other column shows the money National Grid has paid generators to bring the system back into balance, both in terms of energy and to readdress the level of reserve available on the system (“Payments to Rebalance System”). The majority of our constraint costs in general regard this process – payments for generation to reduce output, and payments to generation to increase output.

31


However, when managing constraints, National Grid can incur other costs. For example, make use of an intertrip service or bilateral contract to reduce the overall costs to consumers. Because these costs are a consequence of the constraint, these costs are also included in the tables below.

5.2.1 Breakdown of Constraint Costs by Fuel Type (Reporting Month)

November 2017 All Values £m

Fuel Type Payments to

Manage Constraint

Payments to Rebalance

System Net

COAL 0.14 4.57 4.71

GAS -3.80 23.14 19.34

INTERCONNECTOR -0.74 -1.32 -2.06

WIND 7.34 0.01 7.35

OTHER 0.26 -4.72 -4.46

Total 3.20 21.68 24.88

5.2.2 Breakdown of Constraint Costs by Fuel Type (Year to Date)

FY2017-2018 All Values £m

Fuel Type Payments to Manage Constraint Payments to Rebalance

System Net

COAL 3.81 41.22 45.03

GAS 2.73 236.28 239.01

INTERCONNECTOR -14.85 -7.38 -22.23

WIND 100.04 0.38 100.42

OTHER 3.00 -7.78 -4.78

Total 94.74 262.72 357.46

Notes:

1. Positive values indicate costs to National Grid, negative values indicate receipts 2. “Other” includes all fuel types not reported separately and includes hydro, OCGT,

demand side providers, nuclear & oil. More detail on the methodology behind this table can be found here: https://www.nationalgrid.com/WorkArea/DownloadAsset.aspx?id=23082

https://www.nationalgrid.com/WorkArea/DownloadAsset.aspx?id=23082

32


6. Other Information

6.1 New Wind Generation

BMU ID Month First Metered Connection Area

Max Metered MW

WLNYO-4 01/01/2018 ENGLAND_WALES 41.332

6.2 How we manage Wind generation

Energy generated by wind farms varies according to how windy it is. Sometimes there is very little

wind, and on other days wind generation could be too strong such that the turbines shut down automatically for their own protection. In order to balance the system we require backup generation every day. This covers for power station breakdowns, forecasting errors and for unexpected events. In the past we have seen periods when the level of electricity generated from wind within the UK, Ireland and parts of Northern Europe has been very low. This can coincide with days of peak electricity demand when it’s cold and still. The cost of using backup generation is part of the total cost of balancing the system. Sometimes we ask some wind farms to stop generating, or reduce output, because very high wind may affect the transmission network, causing constraints. Where economic we may also use wind powered units to resolve other system issues such as frequency management or to create flexibility across the GB generation portfolio in the same way as we would use any other type of generation for these services.

33


6.2.1 Payments to Wind Powered Generation

The table below shows the payments made to wind powered generation since the 2010/11 financial year. There were no payments to wind powered generation prior to this. All payments to wind powered generation are included regardless of the reason that this cost was incurred.

£m 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Payments to Wind powered generation

0.2 34.1 7.6 49.7 65.3 96.8 83.2 101.7

Payments to wind farms in January 2018 totalled £7.4m.

6.2.2 Monthly Breakdown of Wind Farm Payments

The graph below shows the monthly total payments to wind powered generation this financial year:

£0m

£5m

£10m

£15m

£20m

£25m


Mo

nth

ly T

ota

l

Apr-2017

May-2017

Jun-2017

Jul-2017

Aug-2017

Sep-2017

Oct-2017

Nov-2017

Dec-2017

Jan-2018

Feb-2018

Mar-2018

Wind Farm Payments £5.6m £3.9m £19.8m £7.4m £10.7m £6.8m £23.1m £8.5m £8.6m £7.4m £0.0m £0.0m

Wind Farm Payments

34


7. Summary

This report has provided information on the Balancing Services procured (or acquired) during this month.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Reactive Power (Availability and Utilisation)

Fast Reserve (Tendered)

Short Term Operating Reserve (STOR)

Mandatory Frequency Response (Holding +Response Energy Payment)

Commercial Response

Fast Start/Rapid Start (Capability andUtilisation)

BM Start Up

Constraints and Intertrip

Black Start

System - System Services

Fast Reserve (Non-Tendered)

Fees / Liabilities

Maxgen

STOR BM Utilisation Cost ( Not an AncillaryService Cost)

BM Constraints (Non AS Costs)

PGBT's

Energy Related Products (Netted Spend onForward Trades)

Summary of Balancing Services Costs January 2018

35


8. Further information

For further information on the types of Balancing Services that National Grid intends to procure, please refer to the prevailing Procurement Guidelines. Information on bid and offer acceptances in the Balancing Mechanism is contained within the Balancing Principles Statement Report. These documents, along with the Procurement Guidelines Report, are published in accordance with Standard Condition C16 of the Transmission Licence and are available on the National Grid Industry Information website. The Procurement Guidelines and Balancing Principles Statement Reports can be accessed via: http://www2.nationalgrid.com/UK/Industry-information/Electricity-transmission-operational-data/Transmission-License-Condition-C16-Statements/ Electricity Balancing Services Email: [email protected]

http://www2.nationalgrid.com/UK/Industry-information/Electricity-transmission-operational-data/Transmission-License-Condition-C16-Statements/

http://www2.nationalgrid.com/UK/Industry-information/Electricity-transmission-operational-data/Transmission-License-Condition-C16-Statements/

mailto:[email protected]

36


9. Information Summary Page

Balancing Services Info Provision Total Costs £m Total Value

Reactive Power Market Utilisation Volume (MA) 0GVArh

Utilisation Volume (DefaultPM) 2,030GVArh

Total Spend (MA) 0.09

Total Spend (Default PM) 6.39

Short Term Operating Reserve(STOR)

Including BM and NBM Availability &

Utilisation Volume Weighted Average Outturn Availability Payment £8.84 /MWh

Volume Weighted Average Outturn Utilsation Payment £56.52 /MWh

Total Spend 9.79

Total Utilisation Volume (MWh) 41,670MWh

Mandatory Frequency Response Holding Volumes & Prices: Primary / Sec / High

Average Volume Held MW 125 70 174

Average Price £/MWh 2.08 1.68 3.68

Total Holding Spend 0.79

Total Response Energy Payment Spend 0.07

Commercial Frequency Response No. Of Contracts

Total Spend 8.58

Fast Start Total Spend 0.28

Black Start Total Spend 3.30

Number of Stations 15

BM Start Up Total Cost of BM Start Up 0.32

Number of Instructions 17

Fast Reserve -Tendered Total Spend on Availability & Utilisation 1.10

Capacity 280MW

Fast Reserve Non-Tendered Total Spend on Availability 5.62

SO to SO Volume Imported 0.17GWh

Volume Exported -0.02GWh

Total Spend 0.78

System to Generator Operational Intertrips Capability Payments 0.12

Utilisation Payments 0.00

Commercial Intertrip Service Total Spend 0.02

Balancing Services Constraint Contracts Total Spend 0.18

BM Constraints Only Total Spend 29.67

Transmission Constraints Total Management Cost £29.98m

Maximum Generation Service Total Spend 0.00

Demand Turndown, Fees and Liabilities Total Spend 0.00

Forward Trading Traded Gross Volume 366,199MWh

Net Cost of Forward Trading 4.36

OTC - Power Exchange & Energy:

Buy Volume 0,000MWh

Sell Volume 0MWh

OTC - BMU Specific:

Buy Volume 116,633MWh

Sell Volume -249,566MWh

PGBT No. of PGBT Entered Into:

Sourced 0

Agreed 0

Average PGBT Prices £/MWh:

Buy 0.00

Sell 0.00

Volume MWh:

Buy 0MWh

Sell 0MWh

Total Cost of PGBT 0.00

Summary (exc. Transmission Constraints) Total £71.45m The category of Transmission Constraints is listed in the Balancing Services Data. It is a sub total of BM Constraints only, Balancing Services Constraints Contracts, Commercial Intertrip Service and System to Generator Operational Intertrips. This is provided for ease of use. The Summary/Total excludes the Transmission Constraints subtotal.

37


10. Summary of BSIS Costs

10.1 MBSS Year to Date Summary

MBSS costs report absolute costs (volume x price) on services. Costs differences in the table below compared to the summary in Section 9 are directly related to the estimate of the additional costs of obtaining that service above the costs of balancing the system.

201

7/1

8 £

m

A.

Yea

r to

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Energy Imbalance -£20.2 -£5.2 -£34.2 £0.0 -£29.2 -£28.1 £0.0

Operat ing R eserve £61.4 £67.8 £106.4 £0.0 £86.2 £96.5 £0.0

B M Startup £0.6 £1.9 £0.5 £0.0 £1.1 £2.6 £0.0

ST OR £61.4 £51.5 £50.0 £0.0 £80.8 £71.4 £0.0

C o nstraints - E&W £108.5

C o nstraints - C hevio t £180.8

C o nstraints - Sco tland £39.6

F o o tro o m £9.3 £26.1 £23.1 £0.0 £12.3 £31.6 £0.0

F ast R eserve £72.6 £61.2 £70.2 £0.0 £94.5 £86.5 £0.0

R espo nse £104.4 £128.3 £111.0 £0.0 £132.4 £172.2 £0.0

R eact ive £59.1 £67.8 £66.5 £0.0 £85.3 £93.9 £0.0

M ino r C o mpo nents £18.9 £12.8 £18.4 £0.0 £21.5 £16.6 £0.0

R OC OF £52.0 £0.0 £70.9 £0.0

B lack Start (no n-incentivised) £33.9 £45.0

T OT A L £782.3 £1,019.5 £640.1 £0.0 £1,014.7 £1,405.9 £0.0

£228.2£607.2 £0.0£862.5£413.9£0.0

Note - Individual cost forecasts of ‘England & Wales, Cheviot and Scotland’ are not available. Outturn costs remain split by area.

38

10.2 Latest Projection of Scheme Outturn Cost

Latest P ro ject io n o f Scheme

Outturn C o st

Ap

r-1

7

Ma

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7

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n-1

7

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Se

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/18

Ap

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8

Ma

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8

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Au

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/19

To

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Energy Imbalance -8.4 -1.0 -3.1 -3.0 -2.7 -1.3 -2.8 -3.1 5.1 -1.9 -2.6 -2.7 -27.6 -8.0 -0.7 -2.7 -2.6 -2.4 -0.9 -2.5 -2.7 -2.7 -2.7 -2.7 -2.7 -33.0 -60.6

Operat ing R eserve 5.9 10.0 5.8 4.6 6.0 5.9 6.3 6.2 9.0 8.8 7.6 7.2 83.3 6.0 10.2 6.0 5.1 6.2 6.2 6.3 10.0 10.0 10.0 7.6 7.2 90.7 174.0

B M Startup 0.1 0.1 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.3 0.1 0.3 1.4 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.1 0.1 0.1 0.1 0.3 0.9 2.2

ST OR 5.7 6.9 6.0 6.6 6.4 5.9 6.2 8.9 9.4 9.4 6.2 6.2 83.8 5.5 6.8 6.0 6.5 6.3 5.9 6.1 7.0 8.7 7.0 6.2 6.2 78.2 162.0

C o nstraints - E&W 5.9 15.1 32.5 12.3 11.3 7.1 4.9 16.3 6.4 7.5

C o nstraints - C hevio t 9.5 0.8 24.4 18.1 21.6 17.2 55.0 15.5 19.2 11.9 25.0 20.0 402.5 21.0 22.1 26.9 31.1 32.1 32.9 30.0 28.1 26.0 23.0 17.0 15.0 305.2 707.6

C o nstraints - Sco tland 4.2 1.7 10.2 2.7 4.5 1.0 3.0 7.1 5.2 5.4

F o o tro o m 1.2 2.6 1.2 1.3 0.9 0.7 0.8 0.6 0.1 0.9 1.0 1.2 12.5 1.2 1.3 1.5 1.7 1.2 1.2 1.0 0.8 0.8 0.8 0.8 1.0 13.2 25.8

F ast R eserve 7.4 7.5 7.5 7.2 8.0 7.6 9.0 8.1 8.6 9.1 7.0 7.0 94.1 8.4 7.3 7.4 7.1 7.0 7.3 7.4 7.2 7.2 7.5 7.1 7.2 88.1 182.2

R espo nse 11.1 13.1 13.9 13.5 12.0 11.7 11.4 10.2 11.3 9.9 10.8 8.8 137.9 11.8 12.0 11.4 12.8 13.3 12.0 10.8 10.3 9.8 9.8 10.8 10.8 136.0 273.8

R eactive 7.8 7.7 6.2 6.7 6.2 6.0 6.0 6.0 6.6 6.5 8.0 9.3 83.0 7.0 8.0 7.5 7.5 7.4 7.3 8.3 8.1 9.4 9.0 8.2 9.5 97.2 180.2

M ino r C o mpo nents 1.5 1.8 2.6 2.8 1.8 2.1 3.6 1.1 2.3 1.8 0.6 1.2 23.2 1.4 1.3 1.1 1.6 0.4 0.3 1.1 0.9 -0.9 -1.3 0.4 -1.0 5.3 28.5

R OC OF (E&W) 5.8 3.8 7.2 5.6 8.8 6.0 6.9 2.9 5.3 5.1 6.3 6.3 69.9 5.8 3.8 7.2 5.6 8.8 6.0 6.9 6.3 6.3 6.3 6.3 6.3 75.5 145.4

B lack Start (no n-incentivised) 2.5 2.4 2.2 2.5 2.5 2.8 3.1 3.3 3.3 3.3 3.5 3.8 35.2 3.7 3.8 3.7 3.8 3.8 3.7 3.8 3.7 3.8 3.8 3.5 3.8 45.0 80.2

T OT A L B SUo S 60.2 72.4 116.8 81.1 87.3 72.6 113.3 83.1 92.0 78.1 73.5 68.8 999.1 63.9 76.0 76.0 80.3 84.2 81.9 79.3 79.9 78.4 73.3 65.3 63.8 902.2 1901.4

Estimated BSUoS Vol (TWh) 37.9 38.5 35.6 36.4 36.1 37.8 41.5 47.2 49.2 48.8 45.3 45.4 499.7 39.6 37.4 36.0 36.5 36.4 38.0 42.4 44.9 47.6 48.6 45.1 45.5 498.0 997.7

Forecast NGET Profit/(Loss) 8.2 0.0 8.2

Estimated Internal BSUoS (£m) 13.5 14.0 13.5 14.0 14.0 13.5 14.0 13.5 14.0 14.0 12.6 14.0 164.4 15.6 16.1 15.6 16.1 16.1 15.6 16.1 15.6 16.1 16.1 14.5 16.1 189.5 354.0

Estimated BSUoS Charge (£/M Wh) 1.96 2.26 3.68 2.63 2.82 2.30 3.09 2.06 2.17 1.90 1.91 1.84 2.35 2.01 2.46 2.54 2.64 2.75 2.57 2.25 2.13 1.98 1.84 1.77 1.75 2.19 2.27

8.2 0.0

Notes

- Individual cost forecasts of ‘England & Wales, Cheviot and Scotland’ are not available. Outturn costs remain split by area. - This table is included in the accompanying excel data

39

10.3 Balancing Service Use of System Charges

The BSUoS forecast now includes the reduction in constraint costs estimated from the commissioning of the Western Link, which connects the transmission network in Scotland with the one in England and Wales. The undersea cable is currently operating at a capacity of 900MW, and is expected to increase to its full capacity of 2200MW following the completion of full commissioning during 2018. According to the project plans the full capacity is expected to commission in June 18. This is an estimate as with any large complex project there is a risk that this could change. The additional network capacity will allow more energy to flow between Scotland and England and Wales, allowing additional capacity to connect in Scotland which otherwise could not have been accommodated and is expected to reduce the network constraint costs attributed to the cheviot (Scotland to England) boundary and in northern England. The BSUoS forecast is based on an average forecast of wind and average probability of fault occurrence along with a number of other assumptions across the balancing cost portfolio for 2018/19, including but not limited to inertia costs, interconnector transfers and that the full Western Link HVDC capacity will be operational from June 2018. We have also taken a view on the likely impact on costs from the capacity market and transition to PAR 1 for cash-out prices. The forecast is based on a range of factors with their own assumptions and uncertainties which contribute to the overall uncertainty of the forecast. National Grid will continue to review these assumptions on a monthly basis. Please note that the internal costs for 2016/17 and 2017/18 align with the amount recoverable under RIIO T1. These values are fixed upfront under the RIIO terms and as such the amount now quoted will be recovered via BSUoS, subject to the annual iteration process described in NGET’s Transmission Licence. Dividing this by our latest forecast of demand, including station demand after reductions for embedded wind generation and PV, multiplied by 2 gives an estimate central BSUoS forecast of £2.35/MWh.

40


10.4 Detail BSIS Costs

2017-18 O

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Energy Imbalance -1.9 0.2 -3.0 0.0 -22.3 -5.0 0.0 -27.6 -24.2 0.0

BM -2.0 0.2 -3.0 0.0 -23.2 -5.0 0.0 -28.4 -24.2 0.0

Forward Trade 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

SO-SO 0.0 0.0 0.0 0.0 0.8 0.0 0.0 0.8 0.0 0.0

Operating Reserve 8.8 6.8 10.0 0.0 68.5 72.5 0.0 83.3 90.4 0.0

BM 6.4 4.5 5.9 0.0 37.2 50.2 0.0 43.1 64.4 0.0

Constrained Margin 1.8 2.1 1.3 0.0 21.8 18.8 0.0 28.3 22.1 0.0

Forward Trade 0.4 0.0 2.3 0.0 6.0 1.3 0.0 7.3 1.4 0.0

UTUV (Forward Trade) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Forward Constrained Margin 0.2 0.0 0.6 0.0 2.8 0.8 0.0 3.8 0.9 0.0

SO-SO 0.0 0.1 0.0 0.0 0.0 1.0 0.0 0.0 1.3 0.0

SO-SO Constrained Margin 0.0 0.1 0.0 0.0 0.0 0.3 0.0 0.0 0.4 0.0

AS Demand Downturn 0.0 0.0 0.0 0.0 0.7 0.0 0.0 0.7 0.0 0.0

AS Capacity Contracts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

BM Startup 0.3 0.2 0.1 0.0 1.0 2.2 0.0 1.4 2.6 0.0

STOR 9.4 7.7 7.0 0.0 71.4 59.3 0.0 83.8 72.2 0.0

Standing Reserve 0.1 1.4 -1.3 0.0 2.1 13.2 0.0 -1.2 16.5 0.0

AS - BM Reserve Option Fees 5.3 4.0 4.5 0.0 28.4 26.2 0.0 37.4 31.7 0.0

AS - NBM Reserve Option Fees 2.4 1.2 2.2 0.0 23.7 12.1 0.0 27.7 13.9 0.0

AS - NBM Reserve Utilisation 1.6 1.3 1.6 0.0 17.4 8.6 0.0 20.1 11.3 0.0

AS - Supplemental Standing Reserve 0.0 -0.2 0.0 0.0 -0.2 -0.9 0.0 -0.2 -1.2 0.0

Constraints 24.9

357.5

BM 22.2

76.8

20.8

0.0

270.3

674.5

0.0

402.5

877.2

0.0

Forward Trade 2.5 39.4

SO-SO 0.0 0.0

AS - Intertrip and Constraints 0.2 47.7

Footroom 0.9 0.2 0.8 0.0 10.3 26.3 0.0 12.5 31.6 0.0

BM 0.2 0.2 0.5 0.0 2.5 23.2 0.0 4.3 27.6 0.0

Forward Trade 0.7 0.0 0.3 0.0 7.8 3.0 0.0 8.2 3.1 0.0

SO-SO 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.1 0.9 0.0

Fast Reserve 9.1 7.6 7.9 0.0 80.1 68.8 0.0 94.1 85.4 0.0

BM 1.9 2.6 1.3 0.0 12.9 19.3 0.0 18.0 23.6 0.0

AS - Firm Fast Reserve 1.1 0.9 1.5 0.0 10.6 8.4 0.0 13.2 10.6 0.0

AS - SpinGen (not in sum total) 4.9 3.4 4.2 0.0 42.8 34.2 0.0 47.4 42.5 0.0

AS - Fast Reserve (including Spingen) 5.8 3.8 4.9 0.0 52.6 37.9 0.0 58.6 47.1 0.0

AS - Fast Start 0.3 0.3 0.3 0.0 4.0 3.3 0.0 4.5 4.1 0.0

41


2017-18

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Response 9.9 14.3 8.0 0.0 118.2 142.5 0.0 137.9 170.8 0.0

BM 0.7 2.1 -1.1 0.0 21.5 22.6 0.0 24.6 27.5 0.0

AS - Generator Response 0.8 5.7 2.2 0.0 18.2 55.2 0.0 22.5 65.1 0.0

AS - Demand Side Response 0.4 0.1 0.4 0.0 4.7 4.1 0.0 5.6 4.3 0.0

AS - Response Energy 0.1 0.4 0.0 0.0 0.4 3.4 0.0 0.6 3.7 0.0

AS - Other Response 8.0 5.9 6.5 0.0 73.3 57.2 0.0 84.6 70.2 0.0

Reactive 6.5 8.9 8.8 0.0 65.7 76.7 0.0 83.0 92.9 0.0

AS - Default Utilisation 6.4 8.9 8.7 0.0 64.7 75.8 0.0 81.8 92.1 0.0

AS - Market Agreement Available Capability 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

AS - Market Agreement Synchronised Cap. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

AS - Market Agreement Utilisation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

AS - Sync Comp 0.1 0.0 0.1 0.0 1.0 0.8 0.0 1.2 0.8 0.0

Unclassified BM 1.8 1.6 1.3 0.0 20.3 15.7 0.0 21.6 18.1 0.0

BM+AS General 0.5 -0.2 -0.4 0.0 5.2 -1.5 0.0 5.7 -1.8 0.0

Non Delivery -0.5 0.0 0.0 0.0 -6.1 0.0 0.0 -6.1 0.0 0.0

Other Reserve (Unwinding) 0.2 -0.1 -0.3 0.0 2.7 -0.9 0.0 3.2 -1.0 0.0

Ramping 0.0 0.0 -0.3 0.0 0.1 0.0 0.0 -0.3 -0.1 0.0

SO-SO invoked by external party 0.0 0.0 0.0 0.0 -0.3 0.2 0.0 -0.3 0.1 0.0

AS - SO-SO BSUoS 0.5 0.0 0.0 0.0 4.8 -0.1 0.0 4.8 -0.1 0.0

AS - SO-SO Interconnector 0.2 0.0 0.0 0.0 2.3 -0.1 0.0 2.3 -0.1 0.0

AS - Trading Option Fees 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

AS - Bank Charges 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

AS - Incidentals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

AS - Disputes Formally Raised 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.5 0.0 0.0

AS - Queries/NGC Identified Issues 0.0 0.0 0.2 0.0 1.2 -0.6 0.0 1.4 -0.7 0.0

Reconciliation -0.4 0.0 0.0 0.0 -4.1 0.0 0.0 -4.1 0.0 0.0

ROCOF 5.1 2.9 0.0 0.0 57.3 45.8 0.0 69.9 45.8 0.0

TOTAL IBC 74.8 126.9 61.2 0.0 829.0 1177.6 0.0 963.9 1461.1 0.0

Black Start (non-incentivised)

3.3 0.0 0.0 0.0 27.9 0.0 0.0 35.2 0.0 0.0

TOTAL BSUoS 78.1

856.9

999.1

Note – this table is included in the accompanying excel data file

42


10.5 Volume of BM Actions by Category

Tot

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Energy Imbalance

-142,606 0 -1,704,735 0 -1,704,735 0

BM -142,730 0 -1,720,618 0 -1,720,618 0

Forward Trade 0 0 0 0 0 0

SO-SO 124 0 15,883 0 15,883 0

Operating Reserve

584,743 0 4,596,238 0 4,596,238 0

BM 235,257 0 1,311,014 0 1,311,014 0

Constrained Margin 343,229 0 3,097,474 0 3,097,474 0

Forward Trade 4,380 0 56,911 0 56,911 0

UTUV (Forward Trade) 0 0 0 0 0 0

Forward Constrained Margin 1,877 0 124,588 0 124,588 0

SO-SO 0 0 1,675 0 1,675 0

SO-SO Constrained Margin 0 0 4,577 0 4,577 0

Absolute STOR

853 0 15,779 0 15,779 0

Standing Reserve 853 0 15,779 0 15,779 0

Constraints by Area

576,263 N/A 6,797,116 N/A 6,797,116 N/A

E&W 337,137

4,110,923

4,110,923

Cheviot 150,971

2,238,511

2,238,511

Scotland 88,156

447,682

447,682

Constraint Margin Replacement

583,135 N/A 6,120,863 N/A 6,120,863 N/A

E&W 269,105

2,298,855

2,298,855

Cheviot 185,555

3,257,112

3,257,112

Scotland 128,476

564,896

564,896

Footroom

-16,063 0 -704,117 0 -704,117 0

BM -9,913 0 -108,575 0 -108,575 0

Forward Trade -6,150 0 -588,046 0 -588,046 0

SO-SO 0 0 -7,496 0 -7,496 0

Fast Reserve

32,565 0 221,668 0 221,668 0

BM 32,565 0 221,668 0 221,668 0

Absolute Response

74,536 0 1,784,451 0 1,784,451 0

BM 74,536 0 1,784,451 0 1,784,451 0

Unclassified BM Unclassified BM -320,494 0 -1,631,461 0 -1,631,461 0

BM General

2,344 0 37,467 0 37,467 0

Non Delivery 0 0 0 0 0 0

Other Reserve (Unwinding) 2,219 0 20,513 0 20,513 0

Ramping 0 0 0 0 0 0

SO-SO invoked by external party 124 0 16,954 0 16,954 0

Transmission Losses Transmission Losses 513,009 0 4,376,107 0 4,394,650 0

43


11. Glossary of Terms used in BSIS Tables

NIA The Net Imbalance Adjustment

Energy Imbalance

BM Offers and bids taken in the BM to manage the difference between generation supplied to the BM and system demand

Forward Trade Trades undertaken ahead of gate closure to reduce the forecast difference between generation to be supplied to the BM and system demand

SO-SO Interconnector actions entered into between the system operators of the interconnected transmission systems following interconnector gate closure to reduce the forecast difference between generation to be supplied to the BM and system demand

Operating Reserve

BM Offers and bids taken in the BM to establish headroom on BMUs

Constrained Margin Offers and bids taken in the BM which both create additional reserve and replace pre-existing headroom that is sterilised behind a constraint boundary

Forward Trade Trades undertaken ahead of gate closure to establish additional headroom on BMUs

UTEV (Forward Trade) Untagged Energy Volume is non-locational energy trade volume traded to help meet the forecast energy imbalance.

Forward Constrained Margin

Trades undertaken ahead of gate closure which both create additional reserve and replace pre-existing headroom that is sterilised behind a constraint boundary

SO-SO Interconnector actions entered into between the system operators of the interconnected transmission systems following interconnector gate closure to establish additional headroom on BMUs

SO-SO Constrained Margin

Interconnector actions entered into between the system operators of the interconnected transmission systems following interconnector gate closure which both create additional reserve and replace pre-existing headroom that is sterilised behind a constraint boundary

AS Demand Downturn Ancillary services that enable demand to turndown relative to synchronised generation which, when pulled back to maintain energy balance, creates additional headroom

AS Capacity Contracts Ancillary services that provide additional generation capacity for headroom

BM Startup Optional service that allows BMUs to be warmed ready to synchronise in BM timescales and held in a state of hot-standby if required

STOR

Standing Reserve Offers and bids taken in the BM to run STOR BMUs

AS - BM Reserve Option Fees

Ancillary service availability fees for STOR BMUs

AS - NBM Reserve Option Fees

Ancillary service availability fees for non-BM STOR providers

AS - NBM Reserve Utilisation

Ancillary service utilisation fees for non-BM STOR providers

44


AS - Supplemental Standing Reserve

Ancillary service fees associated with supplemental standing reserve

Constraints

BM Offers and bids taken in the BM to resolve constraints

Forward Trade Trades undertaken ahead of gate closure to resolve constraints

SO-SO Interconnector actions entered into between the system operators of the interconnected transmission systems following interconnector gate closure to resolve constraints

AS - Intertrip and constraints

Ancillary services which provide operational intertrips, commercial intertrips and bespoke contracts to manage constraints

Footroom

BM Offers and bids taken in the BM to establish negative regulating reserve capability (for example by desynchronising a BMU operating at SEL and increasing output on another BMU)

Forward Trade Trades undertaken ahead of gate closure to establish footroom

SO-SO Interconnector actions entered into between the system operators of the interconnected transmission systems following interconnector gate closure to establish footroom

Fast Reserve

BM Offers and bids taken in the BM to run fast reserve BMUs

AS - Firm Fast Reserve Ancillary service availability fees associated with fast reserve contracts

AS - SpinGen Ancillary service fees associated with SpinGen fast reserve

AS - Other Fast Reserve

Ancillary service fees associated with non-BM fast reserve units

AS - Fast Start Ancillary service fees associated with OCGT fast start

Response

BM Offers and bids taken in the BM to position BMUs to be able to provide frequency response

AS - Generator Response

Ancillary service payments for frequency response capability on generation BMUs

AS - Demand Side Response

Ancillary service payments for frequency response capability from demand side service providers

AS - Response Energy Ancillary service payments for the energy delivered when providing frequency response

AS - Other Response Ancillary service payments for firm response, and firm response energy, including part loaded response.

Reactive

AS - Default Utilisation Ancillary service payments for metered reactive power provided under the Default Payment Arrangements

AS - Market Agreement Available Capability

Ancillary service payments for the available capability to provide reactive power pursuant to a market agreement

AS - Market Agreement Synchronised Capability

Ancillary service payments for the synchronised capability to provide reactive power pursuant to a market agreement

AS - Market Agreement Utilisation

Ancillary service payments for metered reactive power provided pursuant to a market agreement

AS - Sync Comp Ancillary service payments for provision of synchronous compensation

Unclassified BM

Actions not satisfying the specific criteria of any other category

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BM+AS General

Non Delivery Correction for failure to delivery energy as contracted.

Other Reserve (Unwinding)

Costs associated with reversing a previously agreed BOA.

Ramping Costs associated with managing changes on the interconnectors to limit rate of change of transfer to the technically achievable ramp rates

SO-SO invoked by external party

SO-SO trades over an interconnector instigated at the request of the other system operator connected to the interconnector

AS - SO-SO BSUoS BSUoS charges associated with interconnector actions entered into between the system operators of the interconnected transmission systems following interconnector gate closure

AS - SO-SO Interconnector

Interconnector fees associated with interconnector actions entered into between the system operators of the interconnected transmission systems following interconnector gate closure

AS - Trading Option Fees

Energy trading broker fees

AS - Bank Charges Interest costs in respect of disputes

AS - Incidentals Exchange rate adjustments

AS - Disputes Formally Raised

Disputes raised on AS payments

AS - Queries/NGC Identified Issues

Forecast cost of unsigned contracts/disputes not yet formally raised

january 2018 v2 - national grid plc

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